US-based grocery firm Supervalu has finalised the $1.36bn cash sale of its Save-A-Lot unit to an affiliate of Onex Corporation.
The deal is subject to customary closing adjustments.
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Under the terms of the deal, Supervalu and Save-A-Lot have entered a five-year professional services agreement, which requires Supervalu to offer certain back office services to Save-A-Lot.
Supervalu president and chief executive officer Mark Gross said: “With the successful completion of the Save-A-Lot sale, we are well-positioned for the future with a stronger balance sheet, the opportunity to more strategically invest in our business, and the ability to more keenly focus on our core business as a leading grocery wholesaler.
“We also look forward to continuing our relationship with Save-A-Lot as one of our important professional services customers.”
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Supervalu has used $750m of the net proceeds to prepay that portion of its outstanding term loan balance.
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By GlobalDataThe grocery firm plans to use the remaining net sale proceeds to further decrease debt, enhance its capital structure, contribute to its pension plan, and support corporate and growth initiatives.
A grocery wholesaler and retailer, Supervalu currently operates through a network of 2,012 stores and has 30,000 employees.
Image: Supervalu grocery store. Photo: courtesy of Supervalu.
